How Are You Keeping Up With Regulatory Changes?

Article By: Gregg Oberg, Spillane Consulting Associates, Inc. When regulatory requirements impact strategic or management action, our goal is to help business leaders make well-informed decisions. With the CFPB, the Only Certainty is Change At this point, we’ve seen so many “will they or won’t they” moments for the 2018 (and beyond) HDMA rule that the CFPB should hire Brett Favre as the official HMDA spokesman. In just the last 30 days, we’ve seen multiple legislative and … [Read more...]

Some Thoughts on Compliance Training

Article By: Gregg Oberg, Spillane Consulting Associates, Inc. Habits that served us well in the past may hurt us after regulatory change. Getting HMDA Wrong? It’s All About the Habits …  Experience is typically viewed as a positive trait, particularly in highly repetitive operations such as mortgage originations. So much so that I’ve always viewed my lack of “Old HMDA” experience as a glaring hole in my knowledge. Those who have reported HMDA transactions for years often know their … [Read more...]

Successors in Interest Under the 2016 Mortgage Servicing Rule

Article By: Gregg Oberg, Spillane Consulting Associates, Inc. Are your policies and procedures ready for the successor in interest rules?  The 2016 Mortgage Servicing Rule, which amends parts of Regs X and Z, creates certain rights for "successors in interest" to the borrower in a mortgage lending transaction. Although most of the 2016 rules have already been implemented, the effective date of these successor in interest provisions is April 19, 2018. Depending on whether you meet certain … [Read more...]

HMDA “Loans in Limbo”: 2017-2018 Timing Issue

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. Remember this later with that 2017-18 reporting window, but also understand now if you're thinking strategically about HMDA 2018. We know that January 1, 2018 is the date new HMDA data collection rules kick in. But what exactly do we do with "loans in limbo" - loans where we take an application in 2017 but don't take final action until 2018?   Side note: I bet a lot of people are going to have this question, but only for … [Read more...]

Should You Delay Appraisal Delivery Until After Review?

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. A common grip from borrowers - could compliance concerns be getting in the way unnecessarily? Sick of borrowers complaining "Where is my appraisal? The appraiser was here  a month ago!" Well, you're not alone. Especially for refinances in markets where housing prices are fluctuating, this can be one of the most anxious parts of the mortgage process for a borrower. What's my house worth? Is it going to be enough?    Often, … [Read more...]

HMDA Exemptions for Commercial Loans

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. Let's build off of last week's newsletter and discuss the significance of identifying a loan as business-purpose. So last week we discussed how the new HMDA rules require us to report whether every single loan is "business-purpose" (thus exempt from Regulation Z) or "consumer-purpose." This is one of a couple of ways for a loan to be exempt from Reg Z. Exemptions for Business-Purpose Loans I wanted to provide a convenient … [Read more...]

HMDA: Distinction Between Consumer-Purpose and Business-Purpose Loans

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. Let's discuss an old regulatory definition that will become more important when HMDA revisions take effect. Distinction Gets More Important With CFPB As far back as the Truth-in-Lending Act goes, it has only applied to "consumer-purpose" transactions. The regulations that define the distinction between consumer-purpose and business-purpose (it can only be one or the other) are unchanged. But until the Dodd-Frank and the CFPB … [Read more...]

Refresher on When a Revised Loan Estimate is NOT Necessary

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. Seems like a good time to revisit this, as lenders continue to get more comfortable with TRID requirements and start to shred over-conservative policies and cut out instances of "over-compliance." Hypothesis I believe some lenders are issuing revised Loan Estimates too frequently, certainly more often than required by regulation. I believe this is, in part, because the industry still considers the LE a replacement for the GFE. I … [Read more...]

Increase in Fair Lending Attention Paid to Loan Servicing?

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. Maybe ignored more often by servicing departments, fair lending is now becoming an issue that deserves at least some attention. Driven by the CFPB, regulators are starting to pay closer attention to fair lending issues in mortgage servicing departments. Fair lending examinations have previously focused more attention on origination activities, so this will represent somewhat of a shift. This started with regulators updating … [Read more...]

From: Spillane Consulting Associates: Alert – We’re changing to an improved format.

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. We've sent this newsletter out every Wednesday morning at 6:00 am for the past 4 years. It has sparked great questions, helpful feedback, and even new relationships. Also important, it has served as an effective way for me to deliver subtle jabs against SCA colleagues. Effective today, we'll be transitioning to an improved format. You will still receive this newsletter every Wednesday, and always at 6:00 am. But we're going to … [Read more...]